- Suncorp (SUN) has given investors a glimpse into the financial impact of natural hazards on its business
- The Australian insurance provider today outlined how a recent hailstorm in Queensland and New South Wales lead to over 6400 claims
- Breaking it down, the Halloween hailstorm triggered 3300 motor claims, 2800 home claims and 300 commercial claims
- Over the first four months of the financial year, and across Australia and New Zealand, Suncorp expects its combined natural hazard costs to land between $348 million and $408 million
- Last month’s hailstorm accounts for a fair chunk of the cost band, with net costs predicted to land between $180 million and $220 million before tax
- Heading into the weekend, Suncorp shares are up 1.3 per cent and worth $8.30
Suncorp (SUN) has given investors a glimpse into the financial impact of natural hazards on its business.
The Australian insurance provider today outlined how a recent hailstorm in Queensland and New South Wales lead to over 6400 claims.
Breaking it down, the Halloween hailstorm triggered 3300 motor claims, 2800 home claims and 300 commercial claims.
But Suncorp believes the figures are yet to hit their ceiling, with claim numbers linked to the natural hazard expected to rise in the coming weeks.
More broadly, the ASX lister forecast where it expects the combined natural hazard expense to land.
Over the first four months of the financial year, and across Australia and New Zealand, Suncorp expects its cost to hit between $348 million and $408 million.
Last month’s hailstorm accounts for a fair chunk of the cost band, with net costs predicted to land between $180 million and $220 million before tax.
Overall, the insurance provider set aside $950 million to cover natural hazard costs in FY21.
That allowance is split equally between the financial year’s first and second halves — so it has $475 million to cover costs from July through December.
That means if the ceiling of Suncorp’s four-month cost prediction rings true — a $408 million impairment — it only has $67 million to cover claims lodged over November and December.
Heading into the weekend, Suncorp shares are up 1.3 per cent and worth $8.30.